Gentherm Inc (THRM)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 107,015 115,077 106,481 77,814 77,439 49,296 48,376 51,790 48,306 66,627 64,510 88,447 115,006 135,032 152,834 111,265 89,217 69,339 51,162 81,116
Long-term debt US$ in thousands 220,064 222,104 222,134 222,173 222,217 207,302 217,441 232,558 232,653 232,000 35,000 36,250 36,250 37,500 45,794 59,319 189,934 193,061 198,099 231,667
Total stockholders’ equity US$ in thousands 616,947 660,709 640,304 647,059 644,722 660,052 670,560 680,318 672,273 624,089 643,195 655,787 653,806 655,480 645,210 612,758 586,331 511,796 469,321 470,381
Return on total capital 12.79% 13.04% 12.35% 8.95% 8.93% 5.68% 5.45% 5.67% 5.34% 7.78% 9.51% 12.78% 16.67% 19.49% 22.12% 16.56% 11.49% 9.84% 7.67% 11.55%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $107,015K ÷ ($220,064K + $616,947K)
= 12.79%

The return on total capital for Gentherm Inc fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio started at 11.55% in March 2020, dropped to 7.67% by June 2020, and increased to 11.49% by December 2020. Subsequently, there was a significant improvement in performance, with the return on total capital reaching 22.12% by June 2021, the highest point in the data provided.

However, after June 2021, there was a decreasing trend in the return on total capital for Gentherm Inc. The ratio declined to 5.34% by December 2022, marking a considerable reduction in performance. The company experienced a slight increase in the return on total capital to 13.04% by September 30, 2024, before stabilizing around 12-13% in the last quarter of 2024.

Overall, the return on total capital for Gentherm Inc displayed variability over the analyzed period, reflecting changes in the company's ability to generate profits from its invested capital. It is essential for investors and stakeholders to monitor this ratio closely to assess the efficiency and profitability of the company's capital utilization.